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Intel Corp. on Monday announced plans to perform another massive re-organization of the company in the recent five years. The reorganization will not only merge different divisions of the company, but also means rather massive changes in responsibility of key executives. In addition, in a rather surprising move, Patrick Gelsinger, the former chief technology officer, will leave the company after thirty years.

The changes align the business around the core competencies of Intel: architecture and manufacturing, placing operating responsibility for them in three senior executives. In making the changes, Paul Otellini, Intel's chief executive, will devote a higher quotient of his time to corporate strategy and driving the company's growth initiatives.

Intel Performs Second Major Reorganization in Five Years

Intel is consolidating all of its major product divisions into the newly formed Intel Architecture Group (IAG), which will be co-managed by Sean Maloney and Dadi Perlmutter, both executive vice presidents. Maloney will be responsible for business and operations while Perlmutter will lead product development and architecture. Reporting to them will be all of Intel's components businesses based on the Intel architecture, as well as all the development and marketing teams needed to bring these products to market.

Intel's global manufacturing organization, the Technology and Manufacturing Group (TMG), will now report to Andy Bryant, Intel's chief administrative officer and also an executive vice president. The move formalizes the role of influence Bryant already plays with TMG and further increases Mr. Otellini's time on business strategy. The TMG organization under Bob Baker, Bill Holt and Brian Krzanich will report to Bryant but otherwise remain unchanged. Baker will continue to oversee Intel's NAND flash memory business.

In addition to micro-architecture planning, microprocessor and chipset development, SOC (system on a chip solutions) and wireless teams managed by Steve Pawlowski, Sunil Shenoy, Rony Friedman, Rob Crooke and Raviv Melamed respectively, there will be six business groups operating under the new IAG umbrella:

  • PC Client Group will consolidate Intel's existing mobile and desktop product operations. As markets shift to a higher mix of mobile products, this new group will take advantage of common building blocks that have existed for years and enable Intel to better scale cross-platform efforts like security and manageability. The PC Client Group will be led by Mooly Eden.
  • Data Center Group will be focused on servers, cloud computing, networking and high-performance computing. This group will be led by Kirk Skaugen.
  • Visual Computing Group will be focused on advanced visualization products, and led by Jim Johnson.
  • Ultra Mobility Group will continue to be led by Anand Chandrasekher and will focus on extending the Intel architecture into mobile handheld devices.
  • Embedded and Communications Group will be lead by Doug Davis.
  • Digital Home Group will remain under Eric Kim, that is driving Intel chips into a variety of entertainment systems and consumer electronic applications.

In addition, with Mr. Maloney's move to IAG, Tom Kilroy will assume responsibility for Intel's Sales and Marketing Group (SMG). Kilroy was previously co-manager of processors for enterprise-class applications, the unit previously known as the Digital Enterprise Group (DEG). Kilroy will report to CEO.

Leading Chip Designer Leaves Intel

Separately, Intel also announced today that Pat Gelsinger and Bruce Sewell have decided to leave the company to pursue other opportunities. Mr. Gelsinger co-managed DEG and Mr. Sewell served as Intel's general counsel. Suzan Miller, currently deputy general counsel, will take the role of interim general counsel.

Pat Gelsinger joined Intel in 1979. He led Intel Labs, which encompasses many Intel research activities, including leading Corporate Technology Group and Intel Research. As Intel's chief technology officer (CTO), he coordinated with Intel's longer-term research efforts and helped ensure consistency from Intel's emerging computing, networking and communications products and technologies.

Previously, Mr. Gelsinger led the Desktop Products Group, where he was responsible for Intel's desktop processors, chipsets and motherboards for consumer and commercial OEM customers as well as Intel's desktop technology initiatives and the Intel Developer Forum.

Prior to 1992, he was general manager of the division responsible for the Pentium Pro, IntelDX2 and Intel486 microprocessor families. Other positions Gelsinger has held during his Intel career include director of the Platform Architecture Group, design manager and chief architect of the original i486 microprocessor, manager of CAD methodologies, and key contributor on the original i386 and i286 chip design teams.

Tags: Intel, Business

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